U.S. National Debt Jan. 2001 $5.7 trillion (when George W. Bush takes office)
U.S. National Debt Jan. 2009 $11.4 trillion (when George W. Bush leaves office)
The U.S. National Debt rose about $500 billion per year since the start of the Iraq War.
Wars are expensive. This is why historically taxes have always gone up during and after wars. This is why wars should only be done when absolutely necessary.
Historic tax rates in the U.S., highest tax bracket:
|Post World War I||77%|
|World War II||75%|
|1988-1990 (peace time)||28%|
Some severe Recessions in the U.S. and its causes:
1918-1921 Post World War I
1929-1939 Great Depression, Federal Reserve
1953 Post Korean War
2007-2010 (or longer) Iraq War
It is a myth that wars improve the economy and makes a country stronger. As you can see from the above statistics, wars lead to very high taxes and also to Recessions and sometimes Depressions. It is a common myth that the U.S. exited the Great Depression via World War II. While World War II was certainly a justified war, it was not the war that led the U.S. out of Depression, but rather aggressive domestic programs and a massive increase in industrialization as the economy went from a predominant agrarian society and into an industrialized, modern economy with greater free trade with other nations. Also, there was a massive influx of new workers during World War II and beyond with the entrance of women into the workforce in large numbers and they increased the overall productivity of the Gross National Product.
Anatomy of the 2007-2010 financial crisis in the U.S.
Iraq War > Massive government spending > Devaluation of dollar > Fed prints more money > Inflation > More spending on Iraq War as it becomes a quagmire > Further National Debt > Federal Reserve responds by lowering interest rates to prevent Recession > Debt doubles in less than 8 years > Fed responds by lowering interest rates again > Interest rates reach new lows unheard of > Banks and Realtors swoop in for the chance to make some quick bucks > Housing prices soar because mortgage payments become lower with the low interest rates > Dollar gets devalued further > Inflation > Home owners can’t pay new mortgage rates when they adjust because their dollars are worthless > Banks go under > Stock market takes roller coaster rides in the uncertain times > Massive foreclosure filings > Very high unemployment numbers not seen since the Great Depression. . .